CSX Corp (CSX) Chart Analysis 081206

This is a stock that Jim Cramer mentioned on his Mad Money show. Cramer says that CSX is more a secular stock than a cyclical one.

Daily chart shows weakness having given up 21% of its value since the beginning of May of this year. Currently the 200sma is just below Friday's close of $58.93. Can we manage to climb back over the prior support level of $60.10? IF not, THEN it will become a LIS and "old support becomes new resistance". Any moves up in price must clear the 34ema for potential higher. IF it fails at the 34ema, THEN it becomes a "blue ice failure pattern" for more downside.

The weekly chart shows increasing weakness as price has now closed below the 34ema.

Monthly chart shows likelihood of more downside to come. We have currently fallen through prior LIS and visual at $62.50. IF we cannot climb back through the $62.50 level, THEN I will be looking for a lower drop in price.